How we compare watchlists
Every Sunday, traders using our method spend 35–50 minutes ranking their watchlist by relative strength momentum. Here is the process we teach.
Define sector groups
Split your watchlist into two or three sector groups with no more than 15 names each. Tag every ticker with its FTSE sector classification. Names that span sectors get assigned to their primary revenue sector.
Plot RS lines
For each name, plot a relative strength line against the FTSE 350 index over twelve weeks. Record the current RS value and whether the slope over the last four weeks is rising, flat, or falling.
Build the ranking table
Within each sector group, rank names by RS slope (rising first, then flat, then falling). Break ties by absolute RS level. The table below shows a simplified example for a financials group.
Flag rotation signals
Mark any name that dropped two or more ranks since last week, or whose RS slope changed from rising to flat. These are early rotation candidates — not sell signals, but attention flags.
Set the week's focus list
Select the top three names per sector group with rising RS slopes. This becomes your focus list for the week. All other names remain on the watchlist but do not receive new entry consideration.
Example: Financials sector ranking (simplified)
Illustrative example only. Not a trading recommendation.
Learn this process hands-on
The Watchlist Lab method is taught in full during our flagship workshop, with individual feedback on your own tickers.
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